Crowdfunding innovation: It’s backers — not money raised — that predicts market success

From www.eurekalert.com

North Carolina State University

Research from North Carolina State University finds that the number of backers a new product attracts during crowdfunding predicts the financial success of the product when it reaches the marketplace - but the amount of money raised during crowdfunding does not.

"A lot of people initially see crowdfunding solely as a way to raise money - but, to me, it seemed like a way to learn and create a community that raises awareness of a product," says Michael Stanko, an associate professor of marketing in NC State's Poole College of Management and lead author of a paper on the work. "So, I wanted to know whether my perception was accurate. How important is the dialogue with crowdfunding backers? What aspects of a crowdfunding campaign contribute to a product's later success in the market?"

To address those questions, the researchers started with data on more than 1,000 successful Kickstarter campaigns related to product innovations in four categories: technology, product design, hardware and video games. The researchers contacted the people behind those campaigns with a survey designed to learn more about their experiences and the market success of their products. The entrepreneurs were contacted one to two years after successfully completed crowdfunding campaigns.

To see the entire article click https://www.eurekalert.org/pub_releases/2017-03/ncsu-cii030717.php

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